Contenido principal del artículo

Karlo Kauko
Bank managers often claim that equity is expensive, which contradicts the Modigliani-Miller irrelevance theorem. An opaque bank must signal its solvency by paying high and stable dividends in order to keep depositors tranquil. This signalling may require costly liquidations if the return on assets has been poor, but not paying the dividend might trigger a run. A strongly capitalized bank should keep substantial amounts of risk-free yet non-productive currency because the number of shares is high, which is costly. The dividend is informative of the state of the bank; rational depositors react to it.


Los datos de descargas todavía no están disponibles.
Kauko, K. (2014). Does Opaqueness Make Equity Capital Expensive for Banks?. Revista De Economía Del Rosario, 17(02), 203-227.

Admati, A. R., DeMarzo, M. P., Hellwig M. F., & Pfleiderer, P. (2010). Fallacies, irrelevant facts and myths in the discussion on capital regulation: Why bank equity is not expensive. The Rock Center for Coprorate Governance at Stanford University working paper series, 2063.

Åhman, G. (1943). Strukturförändringar i affärsbankernas rörelse (In Swedish: Structural changes in commercial banks' business). Ekonomiska samfundets tidskrift, 58, 54-102.

Aivazian, V. A., Booth, L., & Cleary, S. (2006). Dividend smoothing and debt ratings. The Journal of Financial and Quantitative Analysis, 41, 439-453.

Al-Yahyaee, K. H., Pham, T M., & Walter, T. S. (2011). The information content of cash dividend announcements in a unique environment. Journal of Banking and Finance 35, 606-612.

Araujo, A. Moreira, H., & Tsuchida, M. (2011). Do dividend changes signal future earnings? Journal of Financial Intermediation, 20, 117-134.

Bessler, W., & Nohel, T. (2000). Asymmetric information, dividend reductions and contagion effects in bank stock returns. Journal of Banking and Finance, 24, 1831-1848.

Bhattacharya, S. (1979). Imperfect information, dividend policy and “the bird in the hand” fallacy. The Bell Journal of Economics, 10, 259-270.

Bozos, K., Nikopoulos, K., & Ramgandhi, G. (2011). Dividend signaling under economic adversity: evidence from the London Stock Exchange. Review of Financial Analysis, 20, 364-374.

Calomiris, C. W., & Kahn, C. M. (1991). The role of demandable debt in structuring optimal banking arrangements. American Economic Review, 81, 497-513.

Casey, M. K., & Dickens, R. N. (2000). The effects of tax and regulatory changes on commercial bank dividend policy. The Quarterly Review of Economics and Finance, 40, 279-293.

Chemmanur, T. J., He, J., Hu, G., & Liu, H. (2010). Is dividend smoothing universal? New insights from a comparative study of dividend policies in Hong Kong and the U.S. Journal of Corporate Finance, 16, 413-430.

Diamond, D. W. (1984). Financial intermediation and delegated monitoring. Review of Economic Studies, 51, 393-414.

Diamond, D. W., & Dybvig, P. H. (1983). Bank Runs, Deposit Insurance, and Liquidity. Journal of Political Economy, 91, 401-419.

Diamond, D. W., & Rajan, R. (2001). Liquidity risk, liquidity creation and financial fragility: a theory of banking. Journal of Political Economy, 109, 287-327.

Filbeck, G., & Mullineaux, D. J. (1999). Agency costs and dividend payments: The case of bank holding companies. The Quarterly Review of Economics and Finance, 39, 409-418.

Forti, C. A. B., & Schiozer, R. F. (2012). Bank Dividends and Signaling to Information-Sensitive Depositors. Working Paper. Retrieved from

Garrett, I., & Priestley, R. (2000). Dividend Behavior and Dividend Signaling. The Journal of Financial and Quantitative Analysis, 35, 173-189.

Hanson, S. G., Kashyap, A. K., & Stein, J. G. (2011). A Macroprudential Approach to Financial Regulation. Journal of Economic Perspectives, 25, 3-28.

Hirtle, B. (2006). Stock market reaction to financial statement certification by bank holding company CEOs. Journal of Money, Credit and Banking, 38, 1263-1291.

Iannotta, G. (2006). Testing for opaqueness in the European banking industry: evidence from bond credit ratings. Journal of Financial Services Research, 30, 287-309.

Iyer, R., & Puri, M. (2012). Understanding bank runs: The importance of depositor- bank relationships and networks. American Economic Review, 102, 1414-1445.

Kaplan, T. R. (2006). Why banks should keep secrets. Economic Theory, 27, 341-357.

Keeley, M. C. (1990). Deposit insurance, risk and market power in banking. American Economic Review, 80, 1183-1200.

Levati, M. V., Qiu, J., & Mahagaonkar, P. (2012). Testing the Modigliani-Miller theorem directly in the lab. Experimental Economics, 15, 693-716.

Lintner, J. (1956). Distribution of incomes of corporations among dividends, retained earnings and taxes. American Economic Review 46, Papers and proceedings of the sixty-eighth annual meeting of the American Economic Association, 97-113.

McCandless, G., Gabrielli, M. F., & Rouillet, M. J. (2003). Determining the causes of bank runs in Argentina during the crisis of 2001. Revista de Análisis Económico, 18, 87-102.

Miller, M. H., & Modigliani, F. (1961). Dividend Policy, Growth and the Valuation of Shares. Journal of Business 34, 411-433.

Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance and the Theory of Investment. American Economic Review, 48, 261-297.

Morgan, D. P. (2002). Rating banks: risk and uncertainty in an opaque industry. American Economic Review, 92, 874-888.

Newman, J. A., Dickens, R. N., & Casey, K. M. (2002). Bank Dividend Policy: Explanatory Factors. Qurarterly Journal of Business and Economics, 41, 3-12.

OECD (2010). Economic Surveys. Euro area 2010, OECD Publishing. Retrieved from

Saunders, A., & Wilson, B. (1996). Contagious bank runs: Evidence from the 1929-1933 period. Journal of Financial Intermediation, 5, 409-423.

Saunders, A., & Wilson, B. (1999). The impact of consolidation and safety-net support on Canadian, US and UK banks 1893-1992. Journal of Banking and Finance, 23, 537-571.

Sawada, M. (2010). Liquidity risk and bank portfolio management in a financial system without deposit insurance: empirical evidence from prewar Japan. International Review of Economics and Finance, 19, 392-406.

Shin, H. S. (2009). Reflections on Northern Rock: The Bank run that heralded the global financial crisis. Journal of Economic Perspectives, 23, 101-119.

Starr, M. A., & Yilmaz, R. (2007). Bank runs in emerging-market economies: evidence from Turkey’s Special Finance Houses. Southern Economic Journal, 73, 1112-1132.

Theis, J., Yesilyaprak, A., Jauregui, A., & Dutta, A. (2010). Bank holding company dividend policy: changed by recession? Paper presented at 2010 Southwest Decision Sciences Institute Conference in Dallas, Texas

Thies, C., & Gerlowski, D. (1993). Bank capital and bank failure 1921-1932: Testing the White hypothesis. The Journal of Economic History, 53, 908-914.

Detalles del artículo